China goes all-out to keep foreign investors onshore amid Trump threats
China has approved a new plan to attract overseas investors, after recording its steepest drop in foreign direct investment since the 2008 financial crash last year
China has approved a new action plan to stabilise foreign investment in 2025 as it aims to win over global executives concerned about being caught in the crossfire of an intensifying Sino-US trade war.
At an executive meeting of the State Council chaired by Premier Li Qiang on Monday, China’s leaders pledged to create new incentives for foreign companies and equity investors.
“We need to enhance support for foreign firms to reinvest in China, encourage overseas capital to undertake equity investment in China, and streamline regulations and procedures for cross-border mergers and acquisitions,” state news agency Xinhua reported, citing a statement from the council.
The Chinese cabinet said it would fully remove restrictions on foreign investment in manufacturing and expand the number of industries that encourage foreign investment.
It also vowed to ensure domestic and foreign-funded firms received equal treatment during government procurement, broaden financing channels for foreign businesses, and strengthen their intellectual property protections.
In addition, the government would simplify procedures for foreign personnel to travel, live and work in China, according to the State Council.
The moves come amid a sustained downturn in foreign investment. In 2024, China’s foreign direct investment plunged 27.1 per cent year on year in yuan terms, the sharpest decline the country has recorded since the 2008 global financial crisis.